VNG AUTOMOTIVE P. LTD. vs ASSTT. COMMISSIONER OF INCOME

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 20.12.2025 Judgment delivered on: 10.04.2026 Judgment uploaded on: As per Digital Signature~ + ITA 795/2004 + ITA 796/2004 VNG AUTOMOTIVE P. LTD .....Appellant versus ASSTT. COMMISSIONER OF INCOME TAX .....Respondent Advocates who appeared in this case For the Appellant : Mr. Satyen Sethi & Mr. Arta Trana Panda, Advocates. For the Respondent : Mr Abhishek Maratha, SSC, Mr Apoorv Aggarwal, Mr Parth Samwal, JSCs, Ms Nupur Sharma, Mr Gaurav Singh, Mr Bhanukaran Singh Jodha, Ms Muskan Goel, Mr Himanshu Goel and Mr Nischay Purohit, Advocates CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT V. KAMESWAR RAO, J. 1. The challenge in these appeals is against the common order of the Income Tax Appellate Tribunal (“ITAT”) dated 23.06.2004 in ITA. 3792/Del/2002 and ITA. 3793/Del/2002 for the Assessment Years (“AY”) 1993-94 and 1994-95 respectively. Signature Not Verified Signed By:PRADEEP ITA 795-796/2004 Page 1 of 30 SHARMA Signing Date:10.04.2026 14:51:19 2. The appellant company was incorporated on 24.03.1992 with the object of carrying on business of manufacture and export of ecological brake-shoes for two-wheelers, cars and trucks. For AYs 1993-94 and 1994- 95, returns declaring “nil” income were filed on 29.12.1993 and 29.11.1994, respectively. In computing the income, interest earned during the respective previous years was adjusted against project expenses. 3. On 25.05.1992, the appellant entered into an agreement with CDB Holding Pte. Ltd, Singapore for acquiring technical know-how. In terms of the agreement, the appellant was to pay USD 2, 50,000/- out of which, USD 50,000/- (Rs.20,27,000/-) was paid during AY 1993-94. The balance USD 2,00,000 /- was to be paid in five equa